Total Customs Services Inc.

01/09/2020

01/28/2016

Vancouvers Delta Port Experiencing Delays

Several shipping lines have reported a dramatic increase in container dwell times at the GCT Delta Port, in Vancouver, over the last few days. Those shippers are also reporting that the Vancouver terminals serviced by CN and CP rail are the most severely impacted.

Questioning of the carriers discovered that a large quantity of missing rail cars has yet to be returned to Vancouver after being previously sent into the US. This is causing a huge backlog and in some cases increased container dwell time up to 14 days; however, Delta Port is publishing an average of 6 days dwell time.
In addition, GCT Delta Port is undergoing a large intermodal yard reconfiguration (construction at the facility is forcing a small amount of containers to be trucked off the terminal to VIT to alleviate congestion).

Presently, the shipping lines most affected are: Maersk, Hapag Lloyd, CMA-CGM, OOCL, MSC, ZIM, CSCL, and COSCO

01/05/2016

Admissibility Certification for DOE-Regulated Goods to be Submitted Through ACE

The Department of Energy (DOE) is proposing a new rule that would require persons importing products and equipment covered under/subject to an applicable energy conservation standard to provide a certification of admissibility to the DOE through the Automated Commercial Environment (ACE). Comments, data, and information regarding the newly proposed rule are due no later than February 12, 2016.

The proposed rule differs from current DOE regulations that require persons importing covered goods to submit annual certifications ensuring all products are compliant with applicable energy conservation standards.

The DOE proposed rule works in coordination with the requirement for federal agencies to use the International Trade Data System and ACE to create a single window through which businesses will electronically submit import-related data for clearance. This regulation would require importers of covered goods falling under specified HTSUS numbers to provide a certification of admissibility for each shipment of such goods through ACE before their arrival at a US port of entry. The DOE states that this requirement would apply to all such goods contained in the shipment, either as a final product or a component part of a final product.

For all shipments of covered goods, the importer would be required to provide the DOE certification with applicable energy conservation standards, the CCMS ticket number, the CCMS attachment identification number assigned to the certification submission, and the line number corresponding to the certified goods. For products contained within the shipment that have not been certified to the DOE through CCMS, the importer would be required to include, for certification of admissibility, the type of good, its brand name and individual model number, the original equipment manufacturer of the good, and a contact name and e-mail address for the importer of record.

For further information about the DOEs proposed rule, a listing of affected HTS numbers, and contact information for submitting comments, please seehttps://www.gpo.gov/fdsys/pkg/FR-2015-12-29/pdf/2015-32796.pdf

12/21/2015

Ocean Carriers Announce January 15th PSS

Ocean carriers are proposing a Peak Season Surcharge (PSS) on US/Canada bound cargo from Far East and Indian origins.

The PSS is anticipated on January 15, 2016. In addition, steamship lines have announced their intention to assess a General Rate Increase (GRI) effective January 1, 2016.

Published PSS levels effective January 15, 2016, for US/Canada
20' Standard Containers: USD $360
40' Standard Containers: USD $400
40' High-Cube Containers: USD $450
45' Standard Containers: USD $506
LCL: USD $8 per CBM, min USD $8

12/16/2015

Wednesday, 16 Dec, 2015
________________________________________

Asia Europe Trade (Westbound) Rate Restoration Program

Dear Valued Customer,
In order to continue providing quality and sustainable services, we are announcing a Rate Restoration Program in the Asia Europe Trade.
With effect from 1st January, 2016, freight rates for westbound traffic from Far East to North Europe, the Mediterranean and Black Sea will be increased by US$1,000 per TEU rated by “on-board date”.
For further information, please kindly contact our local Sales Representatives.

Thank you for your understanding and continued support of OOCL.

12/07/2015

Ocean Carriers Announce January 1st GRI

Major Steamship Lines have announced their intention to assess a General Rate Increase (GRI) on all US/Canada bound cargo from Far East and Indian origins. In the US/Canada, a previous GRI scheduled to take effect on December 1, 2015, for both destinations, was postponed.

For all 2016-2017 service contracts, liners in the Transpacific Stabilization Agreement (TSA) are seeking to establish long-term minimum rates of $1,700 per 40-foot equivalent unit (FEU) for containers moving to the West Coast and $2,900 per FEU to the U.S. East and Gulf Coasts.
GRI Levels Effective January 1, 2016
For Shipments to all US/Canadian destinations to/via West Coasts ports of Discharge

20' Standard Containers: USD $1,080
40' Standard Containers: USD $1,200
40' High-Cube Containers: USD $1,350
45' Standard Containers: USD $1,520
LCL: USD $24 per CBM, min USD $24
For Shipments to all US/Canadian destinations to/via East Coast and US Gulf ports of Discharge

20' Standard Containers: USD $1,440
40' Standard Containers: USD $1,600
40' High-Cube Containers: USD $1,800
45' Standard Containers: USD $2,025
LCL: USD $32 per CBM, min USD $32

Along with our overseas partners, TCS will try to mitigate the upcoming rate increases. Ultimately, the market will determine carriers flexibility. However, as a result of global economic uncertainties and a decline in spot-market rates on containerized shipments from Asia to the US/Canada, rate volatility is possible and there is potential for rates to be at, or close to, the published GRI levels. In addition, shippers should prepare for increased rates throughout 2016

10/15/2015

Trans-Pacific Partnership (TPP) Agreement Reaches Capitol Hill

After ten years of negotiation, the Trans-Pacific Partnership (TPP) Agreement has reached Capitol Hill. TPP would eliminate or reduce tariff and non-tariff barriers for goods and services and covers the full spectrum of trade and investment. TPP would eliminate more than 18,000 taxes and trade barriers applied to US-made products, as well as offer trade benefits to 11 member countries including Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam
The comprehensive agreement covers 30 chapters of trade and trade-related issues, from trade of goods through customs and trade facilitation, sanitary and phytosanitary measures to intellectual property. TPP parties agree to eliminate and reduce tariff and non-tariff barriers on industrial goods, as well as eliminate or reduce tariffs or other restrictive policies on agricultural goods. While tariffs on industrial goods would be eliminated immediately, tariffs on other products would be removed over a longer time frame. Additionally, the rules of origin, defining where a particular commodity originates, have been simplified to universally apply to all participating countries.

As TPP makes its way through Congress, TCS will continue to provide updates.

09/15/2015

RE: CTAO STRIKE in GTA – update

Dear Valued Customer,

The strike action of container truckers organized by the Container Trucking Association of Ontario (CTAO) continues today. Hundreds of owner-operators parked their equipment, stopped picking-up and delivering containers, and posted picket lines in front of CN Rail and CP Rail terminals in the Greater Toronto Area (GTA). .

There are reports of intimidation tactics against truckers who continued to work, and most companies have all but stopped sending drivers because of safety concerns. Reports continue to come in of both intimidation and violence against equipment.

On Sunday, the CTAO drivers union met again with the owners of various trucking companies. At the time of this writing, no agreement/settlement was reached.

We have been advised that CP Rail, due to high volumes of import cargo at their Vaughn facility, has suspended trains into the GTA from both Vancouver and Montreal. This will result in backlogs at these ports of entry. We have not been advised of any such action by CN Rail at this time.

We are monitoring the situation very closely and are using our resources to mitigate the effects of this strike on our customers. Please be aware that the strike action may result in storage, demurrage, detention or diversion charges which will be for the account of the cargo owners.

We appreciate your continued support as a valued customer and should you require any further information or clarification, please do not hesitate to contact your account manager or customer service representative.

09/04/2015

Food truck being shipped by Total Customs Services from the Port of Montreal to Hong kong

08/20/2015

What China's currency devaluation means for the world's trade deals

With the sudden depreciation of China’s renminbi [yuan], it’s worth looking at the link between currency values and trade agreements. China’s currency last week dropped by a cumulative 4.4% against the U.S. dollar, making Chinese exports cheaper and imports into China more expensive by that amount.

The effect on trade can be substantial. With the U.S. average tariff on industrial goods well under 2%, this change in China’s currency value easily swamps most U.S. tariffs. And given the fact that the U.S. dollar was already strong, this move is an added disadvantage to U.S. exports headed for China compared to exports from other countries.

As world leaders continue negotiating what’s poised to be a landmark trade deal across the Pacific Rim, some U.S. lawmakers have responded with criticism: “..[the] provocative act by the Chinese government to lower the value of the yuan is just the latest in a long history of cheating,” said Republican U.S. Sen. Lindsey Graham, who along with Democratic New York Sen. Chuck Schumer had sought to include a tough provision against currency manipulation in the Trans-Pacific Partnership Agreement (TPP).

China is not a part of the TPP negotiations, but the trade deal has an open architecture — other countries can negotiate accession to the agreement anytime after the current 12 participants conclude the deal...

The subject is controversial. There is no international (or domestic) agreement on what constitutes currency manipulation. ...China’s case is also complicated. The value of the RMB had been rising against the dollar over the last two decades – by over 30%. In May, the International Monetary Fund declared that it no longer considered the RMB to be undervalued.

China’s latest currency move has drawn muted responses from the IMF and U.S. Treasury. As quoted in The New York Times, the IMF said “China’s new plan for determining the value of the renminbi ‘appears a welcome step as it should allow market forces to have a greater role.’ But the IMF also carefully noted that “the exact impact will depend on how the new mechanism is implemented in practice.”..

Nonetheless, Congress, in the recently passed trade promotion authority, set out as a principal that any trade deal the U.S. negotiates will have zero tolerance for currency manipulation. This negotiating objective, and a companion provision dealing with unfair currency practices, are applicable to TPP.

To be responsive to this Congressional mandate, the U.S. Treasury is working with its TPP country counterparts on a currency understanding. This would provide that finance officials and central bankers meet to promote greater accountability with respect to currency values and to avoid exchange rate manipulation. The proposal is envisaged as a forum for addressing these questions without binding dispute settlement being available to settle differences.

This does not go as far as many in Congress seek, but it is a step in the direction of giving some substance to what in fact has been the international trade rule on exchange rates since 1947: countries are not to undermine their trade commitments by actions they take on exchange rates.

This has been exerpted from the 19 August 2015 edition of the Fortune Magazine.

08/19/2015

Ocean Carriers Announce September PSS and GRI

Ocean carriers are proposing a General Rate Increase (GRI) and Peak Season Surcharge (PSS) on US/Canada bound cargo from Far East and Indian origins. In the US/Canada, a previous GRI took effect as scheduled on August 1, 2015, and the next anticipated GRI is September 1, 2015. A PSS took effect as scheduled on August 15, 2015. In addition, steamship lines have announced their intention to assess an additional PSS effective September 15, 2015.

Published GRI levels effective September 1, 2015, for US/Canada

20' Standard Containers: USD $540
40' Standard Containers: USD $600
40' High-Cube Containers: USD $675
45' Standard Containers: USD $760
LCL: USD $12 per CMB, min USD $12

TCS has observed the August 1, 2015, GRI fluctuating between $200-$400 depending on service/carrier and container size. Along with our overseas partners, TCS will try to mitigate the September 1, 2015, GRI increase; however, the market will ultimately determine carriers' flexibility. There is potential for rates to be at, or close to, the published GRI levels reflected above.

Published PSS levels effective September 15, 2015

20' Standard Containers: USD $360
40' Standard Containers: USD $400
40' High-Cube Containers: USD $450
45' Standard Containers: USD $506
LCL: USD $8 per CMB, min USD $8

Along with our overseas partners, TCS has observed the August 15, 2015, PSS fluctuating between $180-$450 depending on service/carrier, lane, and container size.

08/17/2015

Strike at Nhava Sheva Causes Severe Congestion

Terminal traffic around Indias largest port, Nhava Sheva, is experiencing extensive delays due to recent strike activity at the GTI Terminal.

Traffic back-ups are occurring up to 20 kilometers from unloading gates around the Nhava Sheva circle, taking trucks up to 14 hours to pick up export or import containers.

Carriers have warned of delays for all ongoing and upcoming shipment activity. Trade officials fear there could be shut-outs or additional charges as a result of the extreme congestion.